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With Tropical Storm Erin just offshore, and Tropical Storm Dean forming in the Atlantic, it certainly appears this hurricane season is about to heat up. While Erin appears to be mainly a rainmaker, the National Hurricane Center seems far more concerned about Dean, which will likely become a hurricane very soon. The system is expected to become a major hurricane capable of producing tremendous damage by Sunday. Hurricane Dean will likely be aimed toward the Gulf Coast of the  United States or Mexico by the middle of next week. How can you profit from potential hurricane landfalls? I will visit some companies that generally benefit from such tropical system landfalls.

Global Industries Ltd. (NYSE: GLBL) is a company that provides construction services to offshore oil and gas companies, primarily in the Gulf of Mexico. Their business is particularly strong when a hurricane damages oil platforms, because the major oil companies call on GLBL to do the reconstruction. Major construction companies such as The Shaw Group Inc. (NYSE: SGR) and Fluor Corporation  (NYSE: FLR) also benefit in the event that homes are damaged near the coast and temporary housing or construction is needed. We certainly hope that these storms do not cause that kind of destruction, but if they do, these stocks will go higher.

Generally an upcoming hurricane drives energy futures up, which benefits oil and deepwater drilling companies such as Exxon Mobil Corporation (NYSE: XOM) and Transocean Inc. (NYSE: RIG). The price of oil has already begun to rise because of the fear of these tropical systems, but because of the terrible stock market of late, these stocks have sold off.

I believe that Tropical Storm Erin is not a major system, and will likely not benefit any one company very much. The eventual Hurricane Dean is very likely to benefit some companies if it gets to be as powerful as it is expected. It has been quite a while since we have seen a major category 3 or 4 hurricane and traders will be listening closely if Dean becomes one.

The oil companies listed above that benefit from the rise in oil and natural gas prices due to a hurricane could benefit from this action. Global Industries is the name that is liable to benefit the most, given that the company constructs oil platforms primarily in the Gulf of Mexico. Since Dean appears to be heading to the Gulf of Mexico, if any damage is done GLBL should benefit nicely. What stocks do you believe are good buys in anticipation of these tropical systems?